S&P Releases Bitcoin and Ethereum Indexes, What does it mean?
Financial data giant S&P DJI (Dow Jones Indices) has launched three new cryptocurrency indices. These are the S&P Bitcoin (SPBTC) Index, the S&P Ethereum Index (SPETH) and the S&P Crypto Mega Cap (SPCMC) Index (a combination of Bitcoin and Ethereum). Investors have been waiting for a traditional financial product that has been tracking cryptocurrency prices for a long time. At this stage, S & P's cryptocurrency indices will further normalize Bitcoin and Ethereum data for retail investors looking to decode Bitcoin and Ethereum price action.
The purpose of S&P in creating cryptocurrency indices; It aims to measure the performance of Bitcoin and Ethereum listed on open exchanges and to bring transparency to the cryptocurrency market. S&P announced last year that cryptocurrency indices would be released in 2021, and it started as of Monday. It has just launched three new cryptocurrency indices.
- S&P Bitcoin Index (SPBTC), This index is for tracking Bitcoin's performance.
- S&P Ethereum Index (SPETH), This index is for tracking Ethereum's performance.
- S&P Cryptocurrency MegaCap Index (SPCMC), This index to track the combination of Bitcoin and Ethereum.
S&P Dow Jones Indices LLC stated that the cryptocurrency pricing and reference data will be provided by Lukka, a partner of S&P Global, Inc. S&P treats the price of an asset as a point, not a currency.
When we look at S & P's cryptocurrency indexes, we will see it in points, not dollars. S&P will use Lukka Prime Fair Market Value end-of-day price data received at 16:00 EST to calculate the cryptocurrency index. Lukka is a crypto asset data services provider. In short, indices do not measure the real price, they measure the price valuation and show it as a point.
S&P gave the following point evaluations on Monday afternoon: 7.611 for SPBTC, 24.811 for SPETH and 5.617 for SPCMC. These indexes will provide great convenience and transparency for investors following S&P data. In this way, S&P will further normalize Bitcoin and Ethereum data for investors. I think these indexes can play an important role in attracting new investors to Bitcoin and Ethereum in the future, especially among S&P customers.
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